The Latest News from Clairvest
Toronto, Ontario (June 28, 2017) – Clairvest Group Inc. (TSX: CVG) (“Clairvest”) is providing an update on the previously announced regulatory issues with respect to its investment in Head InfoTech India Pvt. Ltd. (“Head InfoTech”). On June 17, 2017, the Telangana (India) state government issued an ordinance which, among other things, made it illegal to operate an online gaming platform within the state (providing services to customers within the state and operating such a business within the state serving customers outside the state) (the “Ordinance”). Head InfoTech, which operates an online skill based gaming platform, immediately shut down its operations in response to the Ordinance.
Head InfoTech, along with other online rummy companies in India, are challenging the validity of the Ordinance in the Indian courts. While final resolution of the court challenge is pending, on June 28, 2017 the High Court for the State of Telangana made an oral observation that serving customers outside Telangana should not entail any violation of the Ordinance to which the advocate general representing the state government was agreeable while reserving the right to respond fully in arguments scheduled for next week. Accordingly, Head InfoTech has resumed operations for customers outside of Telangana. Revenue from customers outside of Telangana represented approximately 60% of Head InfoTech’s overall revenue.
There is no assurance that Head InfoTech will ultimately be successful in its court challenge or that interim relief (consistent with the above mentioned oral observation) will be granted following next week’s court proceedings.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
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